Latest Cracker Barrel Claims are Further Proof Change is Needed

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Nov 19, 2024, 08:00 ET

San Antonio, TX, Nov. 19, 2024 /PRNewswire/ -- Biglari Capital Corp. today issued the following news release.

As we quickly approach the 2024 Annual Meeting on Thursday, November 21^st, Cracker Barrel continues to mislead investors. Stockholders do not need to read between the lines, they only need to read the Company's actual lines.

What Cracker Barrel Says about its
$700 million plan on the Eve of the
Annual Meeting

What Cracker Barrel Previously Said
about its $700 million plan

"Sardar Biglari continues to misrepresent
Cracker Barrel's capital spending plan.
We are NOT spending $600 - $700
million on store remodels over the
next three years as Mr. Biglari falsely
claims. Our strategic plan contemplates
spending $225 - $325 million in
incremental capital (i.e., over and above
our normal rates of capital spending).
Store remodels are only a part of this
incremental amount. Other investments
include improvements to our technology
and highly successful loyalty program in
order to drive traffic."

(November 19, 2024 Press Release)

"Capital expenditures over the three-year
period of fiscal 2025 through fiscal
2027 of approximately $600
million to $700 million, which assumes
the Company's store remodel initiative
accelerates significantly following the test
of 25-30 stores in fiscal 2025."

(May 16 Cracker Barrel Press release)

"For the three-year period, we anticipate
total capital expenditures of $600
million to $700 million. This comprises
the following amounts per year,
approximately $160 million to $180 million
in fiscal 2025, approximately $180 million
to $220 million in fiscal 2026, and
approximately $260 million to $300 million
in fiscal 2027."

(May 16 Cracker Barrel Call – Craig
Pommells, CFO Cracker Barrel)

The Cracker Barrel investment into technology and tablets has been mentioned in strategic plans since 2017. Why is the Company failing to execute? Why is the Board failing to provide proper oversight?

A Recurring Theme: What Cracker Barrel has been Saying for Seven Years

Fourth Quarter 2017 Cracker Barrel Earnings Call: "We anticipate that capital expenditures for the year will be in the range of $150 million to $160 million. The increase in our capital expenditures plan includes …..key initiatives to support our three-year strategic plan. These initiatives include off-premise, specialty coffee beverages, POS system and server tablets, to name a few."

What Cracker Barrel Says on the Eve
of the Annual Meeting

The Reality

"Carl Berquist and Meg Crofton are
change agents for the Board and the
business, while also serving as important
sources of stability and institutional
knowledge"

(November 19, 2024 Press Release)

The two directors presided over a near
70% destruction in Cracker Barrel's
value. That is not a source of stability.

Sardar Biglari has more institutional
knowledge of Cracker Barrel and its
operations than any other Director.

Cracker Barrel stockholders have a clear choice before them: take a chance on the two incumbents who have overseen the destruction of almost 70% of the stock's value or elect the two people who are best suited to help execute a turnaround and deliver accountability and proper oversight.

Vote the GOLD Card for Milena Alberti-Perez and Sardar Biglari.

SOURCE Biglari Capital Corp.